BREAKING NEWS

Coronavirus in Albania / 15 dead in the last 24 hours, 594 new cases with Covid, 984 citizens recover

Coronavirus in Albania / 15 dead in the last 24 hours, 594 new cases with Covid,
x
BREAKING NEWS

Killed the policeman in Lezha, Aldi Rama leaves urgently for Tirana, here is his health condition

Killed the policeman in Lezha, Aldi Rama leaves urgently for Tirana, here is his
x
BREAKING NEWS

It was reported that he committed suicide, the police give the official notification to Aldi Rama

It was reported that he committed suicide, the police give the official
x
BREAKING NEWS

SPAK lands in this city, Education offices are raided

SPAK lands in this city, Education offices are raided
x
BREAKING NEWS

The action ends / He was being chased by the police for 5 hours, the perpetrator of the execution of the police officer in Lezha commits a serious act

The action ends / He was being chased by the police for 5 hours, the perpetrator
x
BREAKING NEWS

The director of "Shefqet Ndroqi" resigns, this is the well-known doctor who takes his place (NAME)

The director of "Shefqet Ndroqi" resigns, this is the well-known
x
BREAKING NEWS

Dynamics / He was with the killed deputy commissioner, the Chief of Crimes in Lezha Police gives the details of the tragic event: We were looking to arrest someone else who had injured earlier ... (NAME)

Dynamics / He was with the killed deputy commissioner, the Chief of Crimes in
x
BREAKING NEWS

Execution of Deputy Police Commissioner, Yuri Kim reacts immediately

Execution of Deputy Police Commissioner, Yuri Kim reacts immediately
x

Opinion / Editorial

Why do bad loans fall?

Why do bad loans fall?

Contrary to expectations, as we thought and as much as the banking sector itself was concerned, bad loans did not increase this year. Among the main indicators of banking activity, the monetary policy report of the Bank of Albania for the third quarter of this year (https://www.bankofalbania.org/Botime/Botime_Periodike/Raporti_i_Politikes_Monetare/Raporti_Tremujor_es_Molit_20_Molit , where the ratio of non-performing loans (especially bad loans) has decreased significantly during the period January-June 2021, to 7.12% (in July 2021 it fell further, to 7.05%). We were rightly afraid that non-performing loans would increase over time, due to business difficulties from the pandemic. What happened? The rapid recovery of the Albanian economy and the prudent policy of the central bank brought about their reduction. In the above report, our central bank estimates that in the eight-month period January-August 2021, the Albanian economy showed clear signs of recovery and economic growth. The gross domestic product of the country (national production) increased by 5.5 percent during the first quarter and by 5.7 percent during the second quarter April-June 2021. We had a successful summer tourism season, where the number of visitors from abroad for in July it reached 1 million 724 thousand and for August over 1 million nine hundred thousand. Revenues from summer tourism support the country's economic growth. The economy quickly and strongly recovered from five fundamental factors. In addition to summer tourism, secondly, the reduction of movement restrictions thanks to the extensive vaccination process (621 thousand people have been vaccinated with both doses so far), brought about the increase of consumption and the breathing of the economy. Third, in addition to the increase in consumption of our households and private investment, consumption increased in parallel through public investment, which this year is projected to reach 7.9 percent of national production or 930 million euros (level never reached before). Fourth, business and consumer confidence increased, an indicator that our central bank measures professionally and faithfully every three months. The manufacturing and services sectors benefited from this good performance, providing more breathing space for business and creating the preconditions for increasing employment and wages in the future. Fifth, The monetary policy implemented by the Bank of Albania, completely favorable for business and citizens, with low financing costs and suitable lending conditions, enabled a stable growth of credit to the private sector, to 7.7 percent in the second quarter of April -June 2021, compared to the first quarter. In its periodic monetary policy report, our central bank notes that the recovery of the economy during the second quarter of the year and during the two months of the third quarter July-August 2021, has gained momentum. Our economic activity has also been helped by the improvement of the economic situation in our main partners. Economic exchanges with Italy and Greece experienced steady growth. In the eight months of January-August 2021, the activity of the banking sector developed steadily. Deposits and loans increased, credit quality improved significantly and other indicators of financial sustainability maintained adequate levels. The improvement in the health situation supported a rapid revival of economic activity. The experience gained during this period shows that the acceleration of the vaccination process remains fundamental, in order to alleviate the uncertainties that the pandemic course still maintains over the future economic and financial developments of the country. For the banking sector, regular assessment of the degree of exposure of commercial banks to risks is of primary importance. The Bank of Albania continues to take a proactive stance in taking measures to mitigate and cope with risks, as soon as they appear on the horizon. It remains ready to take all necessary actions,